A few days after Binance, Crypto.com becomes the latest cryptocurrency exchange to publish its proof of reserves, the latter ensuring the collateralisation of assets deposited on the platform by its customers. As such, Crypto.com reveals that the crypto-currencies in question are all at least 101% insured in its reserves.
Crypto.com reserves documented
On Friday, December 9, Crypto.com issued a statement reporting an audit of its reserves by Mazars, the same firm that previously audited Binance’s Bitcoin (BTC) reserves. Mazars is one of the world’s largest auditing firms, which also excels in business consulting and international tax.
To carry out these audits, Mazars compared the on-chain addresses of the wallets officially held by Crypto.com with the balances of the platform’s customers.
As a result, the assets audited by Mazars are all collateralised to at least 101%, as shown in the screenshot below:
Relevant cryptocurrency (left) and its collateralisation percentage (right)
Kris Marszalek, the CEO of Crypto.com, who announced a month ago that the audit was underway in response to rumours about the platform, stressed the importance of the publication of these reserves:
Providing evidence of audited reserves is an important step for the entire industry to increase transparency and begin the process of restoring trust. Crypto.com is fully committed to providing customers around the world with a safe, secure and compliant way to engage with digital currencies. “
Note that on the newly created page dedicated to explaining the auditing process of its proofs of reserve, Crypto.com asserts that it is working with the firm Mazars to expand the spectrum of assets scrutinised on its platform. This includes, among others, the Cronos (CRO) and VeChain (VET) blockchains.
The usefulness of proof of reserves
A sine qua non for regaining investor confidence, cryptocurrency exchange platforms have all been required to publish their proofs of reserves to ensure maximum transparency.
In order to understand a little more about how these proofs of reserves work, we have written an article dedicated to this topic which will allow you to learn how to verify these reserves yourself.
Crypto.com is the latest exchange to provide an audit of its reserves, shortly after its rival Binance. Kraken, Coinbase or Gate.io, for the most part, revealed their respective audits following the collapse of FTX at the beginning of last month.
